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Layoffs and Wage Growth of Male Household Heads

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  • Emily C. Blank

Abstract

This paper compares the impact of layoffs on wage growth for men of different demographic groups. This impact is assumed to depend, in part, on the firm-specific, on-the-job training lost through the layoff, which is hypothesized to be a function of the individual's demographic characteristics. Log wage growth regressions are run, disaggregating by age, education and race, and using interactions of tenure with layoffs as one of the independent variables. Results suggest that layoffs decrease wage growth if they occurred within the last six years or after at least four years of tenure, particularly for whites.

Suggested Citation

  • Emily C. Blank, 1988. "Layoffs and Wage Growth of Male Household Heads," Eastern Economic Journal, Eastern Economic Association, vol. 14(3), pages 239-250, Jul-Sep.
    • Handle: RePEc:eej:eeconj:v:14:y:1988:i:3:p:239-250
    as

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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume14/V14N3P239_250.pdf
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    References listed on IDEAS

    as
    1. Ann P. Bartel & George J. Borjas, 1981. "Wage Growth and Job Turnover: An Empirical Analysis," NBER Chapters, in: Studies in Labor Markets, pages 65-90, National Bureau of Economic Research, Inc.
    2. George J. Borjas, 1981. "Job Mobility and Earnings over the Life Cycle," ILR Review, Cornell University, ILR School, vol. 34(3), pages 365-376, April.
    3. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    4. Blau, Francine D & Kahn, Lawrence M, 1981. "Causes and Consequences of Layoffs," Economic Inquiry, Western Economic Association International, vol. 19(2), pages 270-296, April.
    5. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    6. Flanagan, Robert J, 1974. "Labor Force Experience, Job Turnover, and Racial Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 56(4), pages 521-529, November.
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